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How are Medicare benefits changing for 2026?
Changes to 2025 Medicare coverage include a $2,000 cap on Part D out-of-pocket costs, small reductions in the average premium for Medicare Advantage and Part D plans, increases for Medicare Part B and Part A premiums and cost-sharing, and adjustments to income-related premium surcharges for Part B and Part D.
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What is the income-related monthly adjusted amount (IRMAA)?
For 2025, high-income beneficiaries – earning over $106,000 a year – pay an IRMAA surcharge that’s added to their Part B and Part D premiums and determined by income from their income tax returns two years prior.

determination

What is determination?

determination infographic

What is determination?

Determination in Original Medicare is a reference to either the National Coverage Determination (NCD)1 process or a Local Coverage Determination (LCD) process,2 under which rules are established for what services Medicare will cover.

Medicare Advantage plans are required to cover all services that are covered by Original Medicare, and they can also cover various additional services.3

But Medicare Advantage plans and Medicare Part D plans also have their own coverage determination protocols to ensure, for example, that prior authorization is obtained when necessary, or that an enrollee is using an in-network medical provider if that’s a plan requirement.

Enrollees can request a coverage determination from their Medicare Advantage or Part D insurer, to find out whether a particular service will be covered.4

Footnotes

  1. Medicare Coverage Determination Process” Centers for Medicare & Medicaid Services. Accessed June 27, 2025 
  2. Local Coverage Determinations” Centers for Medicare & Medicaid Services. Accessed June 27, 2025 
  3. Understanding Medicare Advantage plans” Medicare.gov. Accessed June 27, 2205 
  4. Coverage Determinations” Centers for Medicare & Medicaid Services. Accessed June 27, 2025